Distruptive Agencies

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<p>The Agency has reported an annual $4.2 million EBITDA loss, which is up on its prior $3.1 million annual loss.</p>
<p>The listed estate agent announced it had identified $2.8 million in cost cutting measures, The Agency told the Australian Securities Exchange this morning.</p>
<p><span>The group reported a net loss before income tax of $7.7 million compared with $3.9 million in the prior year.</span></p>
<p>There was no update from the company which is currently in discussions with a number of parties in relation to the refinance of a debt facility ahead of its maturity which occurs on 30 September, 2019.</p>
<p>The company's share price recently <a href="https://www.urban.com.au/news/102071-the-agency-dips-to-record-low-share-price" target="_blank">hit an all time low of 6.7 cents</a>, today they are trading even lower 6.4 cents per share with no movement since the ASX closed on Friday.</p>
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<p><span>The Agency Group Australia was announcing its results for the year ended 30 June 2019</span>.</p>
<p>The Agency reported annual group revenue of $31 million, an 86 percent increase year-on-year on FY2018 when it was $16.8 million.</p>
<p>The growth followed prior 75 percent growth and 70 percent growth during its initial two years.</p>
<p>The agency saw 2,419 sales, up from 667 sales for FY18.</p>
<p>It was $2.5 billion worth of property sold.</p>
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<p><span>The increase in revenue was primarily due to a 31 percent increase year-on-year in combined gross commission income to $38 million. In FY18 it was $29 million.</span></p>
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<p><span>At the completion of FY2019, the company also had 3,430 listings, up 43 percent on the 2,401 listings at the end of FY18. </span></p>
<p><span>Property management reported a record total of 4,337 properties under management, up 29 percent.</span></p>
<p><span>The company also reported an increase year-on-year in the number of agents recruited, up from 185 over the year to 272 agents as at 30 June 2019.</span></p>
<p><span>The Agency Group reported cash receipts of $33 million for the FY2019, a 120 percent year-on-year increase on FY18's $15 million.</span></p>
<p><span>The Agency Group reported $44,000 net cash from operating activities for the June quarter as a result of an increase in cash receipts for the period.</span></p>
<p><span>The financial results only include six months of operations from Top Level Real Estate - the McGrath rebels - following completion of the acquisition in mid-January 2019.</span></p>
<p><span>The EBITDA loss of $4.2 million included $1.3 million of one-off, non-recurring costs expensed this year, primarily associated with the Top Level transaction (i.e. legal, accounting, professional services, corporate advisory, financing and office fit-outs, etc ).</span></p>
<p><span>The company would have had a normalised EBITDA loss of $2.9 million, excluding the Top Level expenses.</span></p>
<p><span>Its cash at end of financial year was $2.6 million.</span></p>
<p><span>"The company has already identified and has begun implementing $2.8 million in cost savings that will be delivered in FY20," it advised.</span></p>
<p><span><span>Trade payables have blown out from $7.4 million to $13.6 million.</span></span></p>
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